UAE Central Bank sees lower profits in 2013

Profits to decline from Dh3.7bn to about Dh3bn

The UAE Central Bank is expected to net around Dh3.7 billion in 2012 and the profits could slump to nearly Dhthree billion in 2013, according to its Board.

The Board members, who met at the Abu Dhabi-based Central Bank on Sunday, estimated total revenue at Dh3.88 billion in 2013 and expenses at Dh886 million.

A statement after the meeting said the Board projected net earnings at Dh3.70 billion in 2012 and about Dhthree billion in 2013.

The 2012 profits are equivalent to the Dh3.7-billion income achieved in 2011 and Dh3.72 billion made in 2010 but higher than the Dh3.18 billion profits in 2009.

According to its latest monthly bulletin, the Central Bank’s assets surged from around Dh228 billion at the end of 2011 to Dh250 billion at the end of August.

The bulk of the increase was in the Central Bank’s held to maturity foreign securities, 0hich soared from Dh72 billion to Dh106 billion in the same period. Deposits with other banks also grew from Dh30 billion to Dh34 billion.

The Board also reviewed banks comments on the Liquidity Regulation, in terms of the financial instruments accepted as liquidity tools and their limits, implementation date and submitting reports prescribed by the regulation to the Central Bank. The Board decided to postpone implementation until details of the requirements of the regulation are agreed.

The Board discussed limits of placements, dealing in foreign currencies and other engagements with banks, in order to ensure better returns on the Central Bank's foreign currency reserves, and minimize risks.

The Board also reviewed some topics presented by the Human Resources Division, along with a brief report on tasks and responsibilities of the Anti-Money Laundering '&' Suspicious Transactions Unit.

The Board also reviewed a report submitted by the Banking Supervision Department showing the financial position of banks and other financial institutions.

The report included a detailed statement of basic figures, along with an assessment of the financial and regulatory status of each of the banks operating in the UAE.

The Board reviewed report of the Assistant Governor for Monetary Policy and Financial Stability. The report showed the overall prudential ratios of the banking system, financial stability, Central Bank data and liquidity. The report confirmed that banking indicators are considered positive and that banks are in a good position, and are insulated from the current turmoil in financial markets.

Furthermore, the Board reviewed applications submitted by banks '&' other financial institutions operating in the UAE for extension of their activities and opening new branches. The Board approved the applications that fulfill the terms and conditions as per the law and regulations applicable to each business activity.

The Board then addressed the remaining items on its agenda and took decisions in respect thereof.